What’s Hot, What’s Not: China and Asia Dominant, UK and Europe Drifting Down [Sector Edition]

What’s Hot

• Even the average China fund was up nearly 20% over the month.
• That return dwarfs what would ordinarily be decent returns from the Asian and merging market fund sectors, in the 3-5% range.
• The Property Other sector has put its head above the parapet, with some investors clearly believing that recent and prospective rate cuts are coming to the rescue of this unfashionable sector.

What’s Not

• The bottom 3 sectors are UK-centric, but growing gloom is not unique to the UK…
• …European sectors are also drifting lower.
• It is notable that the worst UK and European sectors are small caps…
• …though perhaps with different drivers, political for the UK and economic elsewhere.

What’s Hot

What’s Not